A solar panel is defined as an assembly of solar cells that are capable of converting light directly into electricity. The ability of solar panels to combat harmful greenhouse gas emissions, which helps in reducing global warming, is one of the primary factors responsible for a decrease in solar panel price. Solar panels do not result in any type of pollution. The inclination towards solar generation has led India to overtake the US and become the 2nd largest country in terms of solar power production in the world. Today, the adoption rate of solar panels is accelerating.
Listed down below are some factors stating why solar panel price is decreasing:
- It is a Renewable Source
The energy which is generated from fossil fuels and coal will naturally get exhausted over a period of time. These sources of power are non-renewable. Hence, their use is directly proportional to their decrease in the earth’s crust. However, with solar energy, the ever-existing presence of the sun means that there is a constant source of solar power that cannot be exhausted. They also help in decreasing our resilience on fossil fuels and traditional power sources. Hence, no longer you have to worry about inflated energy bills.
- Government Subsidies
The government has started encouraging people to use solar energy. They are not only creating public awareness but also offering subsidies and tax credits for the expenses incurred in the installation process of the solar systems. The government pays 30% of the total installation cost as a subsidy to the installer. This has resulted in a dip in the solar panel price in comparison to the grid security. Higher incentives by the government mean lower upfront costs and a shorter payback period.
- ROI of the Investment
These factors will give you a rough idea of what your solar payback period might be; it is the best way to put a number on your solar panel ROI. A solar panel payback period refers to the amount of time it will take you to earn back the money which you spent upfront on a solar energy system, mostly in the form of avoided electricity costs.
For instance, if your solar panel payback period is seven years after the payback period is over, you can calculate your actual monetary solar panel ROI by looking at your electricity usage and local electricity rates. If you consume 1,000kilowatt-hours of electricity a month at INR 10.97 per kWh, that’s INR 10,969 you would spend on electricity every month without solar.
However, with solar panels installed and at the end of your payback period, every month, you will save around INR 10,000. The money saved ends up being even more per month, over time, as electricity rates rise.
Invest in a Green Alternative
The above-mentioned factors are the reasons responsible for a decrease in solar panel price. Solar energy plays a key role in helping preserve our non-renewable resources, helping people socially and economically, and creating new employment opportunities. Reputable brands like Luminous offer a range of Monocrystalline PERC and Polycrystalline solar panels, which offer high torsion resistance against wind and snow loads. Their best-in-class efficiency feature ensures optimum solar power generation that provides value for money.
For a bright and sunny future, get your home equipped with solar panels today!
